Section 8 company is a concept that combines the help of a NGO and a Corporate. It provides an substitute to the promoters to move ahead the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits higher than the become old which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Itki Ranchi which are involved in various fields for the welfare of public at large. Our engagement service includes Name Selection, Memorandum Drafting and Company Registration. We meet the expense of our clients best in class services so that they are not frightened with any non compliance during the initial stages of there growth. In Itki Ranchi we take a maximum of 10 days grow old to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally declare of a company ends subsequently word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies keen in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there read out not fall with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there publicize may subside with words in imitation of Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An handing out which otherwise of distributing its surplus/profit in the middle of its members, applies the same in the fulfilment of its objects. That is they are not allowed to distribute any maintenance in the form of dividend or gain sharing. Company registered under Section 8 is a Non Profit Organization
Is Section 8 company Public company or Private Company?
Section 8 Company can be incorporated both as a public as with ease as private company.
- A minimum of 2 members are required if the company is incorporated below the definition of private company and a minimum of 7 members shall be required if the company is incorporated below the definition of public company.
- An OPC (One Person Company) cannot apply for License below Section 8
DONATION:
A company incorporated below Section 8 can take donations from public subject to applicability of further rules and regulations and endorsement form the Memorandum of Association.
If the Section 8 Company is incorporated under the definition of Public Company it can also accumulate members and take membership press forward from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like further NGO can apply for 12A and 80G registration behind Income Tax Department.
CONVERSION FROM OR INTO SECTION 8 COMPANY:
Any company under the definition of Public or Private company can apply for license under Section 8, and the Ministry of Corporate Affairs can after due support of documents and keeping in view whatever the formalities, issue license below section 8 of the Act.
Likewise a company registered under Section 8 can convert itself into Public or private Company.